Friday's Headlines

“Senators Introduce Legislation to Tackle ‘Cow Tax’”

An unlikely pair - South Dakota Republican Senator John Thune and Democrat Charles Schumer of New York - have introduced legislation to prevent what’s been referred to as the cow tax on farmers and ranchers. The measure would prevent the Environmental Protection Agency from imposing Title V (five) operating permits - which automatically result in mandatory feeds - on U.S. agriculture operations under the Clean Air Act.

The American Farm Bureau Federation has calculated that regulating greenhouse gas emissions under the Clean Air Act could cost farmers and ranchers 175-dollars per dairy cow - 87.50 per beef cow and 21.87 per hog. That’s why the organization is commending the bipartisan efforts of Thune and Schumer - and plans to work with them to ensure the legislation gains broad support.
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“California Bill Would Halt Antibiotics Use”

A California state legislator has introduced a bill that would practically end the use of antibiotics in animal agriculture. The bill would, as of January 1, 2012, prohibit schools from serving poultry and meat products which have been treated with antibiotics for non-therapeutic and prophylactic purposes. Then three years later the law would be applied to the production of any human food produced in the state. The bill would also prohibit state and local governments in California from purchasing meat supplies raised using antibiotics for non-therapeutic and prophylactic purposes.

The bill was introduced by Dean Florez, the California Senate majority leader and chairman of the food and agriculture committee. Previously, Florez introduced a measure that would ban tail-docking in dairy cattle. Michael Marsh, chief executive officer for Western United Dairymen, said - we’re curious to see where Florez is going with this legislation. The majority of what he’s proposing is unconstitutional.

Last September Dr. Craig Rowles, a veterinarian and partner with Elite Pork in Carroll, Iowa told the House Agriculture subcommittee that the U.S. pork industry has established programs that include principles and guidelines on antibiotic use that help protect animal and public health and animal well-being. He added, - as a swine veterinarian, I need all the tools available to live up to my oath - to protect animal health, relieve animal suffering and promote public health.
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“International Effort Focuses on Agriculture”

The International Federation of Agricultural Producers has proposed – the Farmers’ Priorities for Action – a five-point integrated approach towards building a new agricultural model that is people centered and knowledge based. The organization believes the implementation of these priorities by governments and United Nations institutions together with national farmers’ organizations is a prerequisite for achieving a sustainable future through agricultural development, while ameliorating adapting to the effects of climate change.

The five points include:
1. Recognize agriculture as an engine for economic growth, rural development and thus poverty reduction.
2. Establish conducive policy frameworks and allocate sufficient budgetary resources to attract investments into agriculture.
3. Take an integrated approach towards rural development strategies, in particular emphasizing basic rural infrastructure and recognizing women farmers as a driving force for any strategy.
4. Develop secure land tenure arrangements, especially for women farmers.
5. Combat desertification by turning dry lands into economic assets and give farmers effective risk management tools.

The president of the IFAP, Ajau Vashee, has challenged public policy makers worldwide to - shift their thinking to recognize agriculture and farmers' organizations as an engine for economic growth and harness the full potential of agriculture to reduce poverty and hunger and revitalize rural areas, while maintaining sustainable rural landscapes through the ecosystem services that farmers provide.
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“Young Farmer – Rancher Survey Results Reported”

A survey conducted during last month’s AFBF 2009 Young Farmers and Ranchers Conference in Sacramento, California, reveals that 89 percent of the respondents, about the same as last year, said they are better off than they were five years ago. Nearly half or 48 percent said they were more optimistic than five years ago, while just 20 percent said less optimistic and 32 percent said their level of optimism was the same.

In ranking a list of common challenges facing farmers and ranchers, the availability of land and facilities was the top concern with 21.3 percent of the respondents. Overall profitability and economic challenges was second cited by 17.1 percent. Government regulations was third at 12 percent, followed by urbanization and the loss of farmland; willingness of parents to turn over the reins of the operation; competition from established or larger farms; health care availability and cost; and challenges presented by animal welfare groups.

Regardless of those challenges, the survey also shows that a whopping 92 percent of the young farmers and ranchers see themselves as life-long farmers. An even larger percentage, 96 percent, say they would like to see their children follow in their footsteps.

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“AFBF Leader Asks for Liberal Trade Policy”

The president of the American Farm Bureau Federation has issued a bold challenge for WTO-member nations to seriously examine the idea of locking in their tariffs at current applied levels. Bob Stallman says that action would deliver a real reduction in global trade barriers and serve as an incentive for global economic activity. Stallman emphasized, the times of the United States - leading the world trade talks by concession are over.

While speaking to an international trade workshop in Richmond, Virginia Stallman addresses the domestic economic downturn. Stallman said - it is time to liberalize trade policy to avoid the mistakes made with the protectionist policies we had during the depression-era. The AFBF leader said - the message we are emphasizing to President Obama and his administration: Let’s not repeat the mistakes of the past. Global economic downturns and protectionist trade policies do not mix.

Stallman said - we must take immediate steps. In tough economic times, we cannot turn our back on trade. In fact, we must be more aggressive than ever in seeking markets for our products - it is not time to set up roadblocks.
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“Argentine Government Responding to Producers”

Argentina has responded to requests by its producers to raise its quota for beef exports by 60-thousand tons. Argentina’s quota now stands at 610-thousand tons. The government in Buenos Aires will also scrap taxes on dairy goods and increase wheat prices.

Argentina’s farmers have been asking their government to eliminate restrictions on exports of all agricultural goods following the fall of commodities prices and devastating droughts. Grain sales were halted and highways were blocked last year as farmers protested tax increases and a beef-export ban.
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“American Farm Bureau Awards Golden Plow”

Pennsylvania Representative Tim Holden has received the Golden Plow award from the American Farm Bureau Federation. The Golden Plow is the highest honor Farm Bureau presents to members of Congress. Holden was honored for his support of America’s farmers and ranchers. According to Farm Bureau President Bob Stallman - with critical issues like maintaining farm bill support, renewable energy policy and regulatory concerns on the minds of farm families - Holden’s understanding of agriculture will be key during the 111th Congress.

In nominating Holden to receive the Golden Plow - Pennsylvania Farm Bureau cited his work as Chair of the Agriculture Subcommittee on Conservation, Credit, Energy and Research. There he played an important role in focusing on conservation practices that support agriculture and helping farmers mitigate erosion and nutrient runoff. Once the farm bill was enacted - Holden used his position as vice chairman of the Ag Committee to address implementation problems with the 10-acre rule.

AFBF presents Golden Plow awards to one House member and one Senator each year.
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“Report Sites Benefits to Raising Ethanol Blend Limit”

The recently formed group - Growth Energy - has released a study that shows - increasing the ethanol blend in the nation's gasoline supply from 10 to 15 percent could create and support 136,101 new jobs. The report also states the change would - inject 24.4-billion dollars into the American economy annually. And the impact would be even greater if the cap was increased from 10 to 20 percent. The study was conducted by a group of current and former faculty of North Dakota State University.

Growth Energy co-chairman General Wesley Clark called the figures – dramatic. He says this proves - we can create desperately needed jobs in the midst of difficult economic times with a relatively simple step. And these are jobs that cannot be outsourced and will, according to Clark, - support rural communities and farmers, reduce greenhouse gas emissions, and ensure the market for cellulosic ethanol.

Dr. Larry Leistritz, professor of agricultural economics at North Dakota State University and lead researcher on this report, points out - there have been many media reports about the struggling ethanol sector, but there has been little discussion about the cause – the regulatory cap of 10 percent. Leistritz says - lifting the cap could provide serious benefits by putting the industry on a path for growth and generating billions of dollars in revenue for many struggling communities.
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“Biofuels Plant Owner File for chapter 11 Protection”

Changing World Technologies, the owner of Renewable Environmental Solutions, a biofuels plant in Carthage, Missouri, has filed for Chapter 11 protection in U.S. Bankruptcy Court. The owner sites escalating expenses for commercializing its waste conversion process. A Butterball turkey processing center has stopped shipping waste material to the plant where it was turned into fuel.
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Senator Lincoln Says "Production Agriculture Has Already Paid"

Senator Blanche Lincoln (D-AR) agrees that the United States is in economic turmoil, but says when the President asks for all sectors to help that "production agriculture has already paid that price - and then some". Lincoln, a member of the Senate Ag Committee, told All Ag, All Day that the 18 months of negotiations leading up to the signing of the 2008 Farm Bill led to deep cuts in farm programs and that there's no more room to cut; adding that the Farm Bill is a contract with America's producers.

In addition, Senator Lincoln called out Ag Secretary Tom Vilsack for "inappropriate comments pitting hard working farmers and farm families against feeding hungry children". Vilsack said this week that U.S. lawmakers will need to choose between supporting "rich farmers" or feeding more hungry children. Lincoln says "no one is choosing one over the other, we can do both and we will do both". She added that "we sure can't feed the hungry if we put our farmers out of business."

The entire interview will be available after 2:00pm on Friday 3/6/09. Scroll down to GUEST INTERVIEWS to listen.

"Operation New Fences" Set For April 25th

Texas Agriculture Commissioner Todd Staples told ALL AG, ALL DAY today, that April 25 is being dedicated toward efforts to rebuild approximately 1,700 miles of fence line in Chambers, Galveston, Jefferson, Liberty and Orange counties. The project is known as “Operation New Fences" and follows on the heels of last years “Operation No Fences,” a massive post-Ike livestock rescue effort.

Operation No Fences began the day after 20-foot storm surges from Ike destroyed almost all of the fences throughout Chambers and Jefferson counties, forcing livestock to make a desperate run for high ground. Rescue and restoration efforts from that program continue to the present day. Operation No Fences resulted in the delivery of more than 9,000 hay bales, 165 tons of feed and 400 water troughs for ranchers who were unable to feed their cattle, according to Staples.

Staples called on all Texans to “lend a helping hand to ranchers in rural Southeast Texas still dealing with the devastation caused by Hurricane Ike almost six months ago,” including assistance through donating items such as fencing materials and livestock feed. While approximately 30,000 cattle roamed the affected area before Ike, the hurricane’s impact took such a severe toll that now only about 7,000 are able to graze in the region as a result of fence loss and high soil salinity, he added.

Ranchers wanting assistance or those wanting to help may sign up through the new Web site created by the state’s agriculture department, http://www.TexasAgriculture.gov , and clicking on “Operation New Fences.”

Soybean Export Council Names Interim CEO

The United States Soybean Export Council Board of Directors (USSEC) named Dr. Miguel Escobar the USSEC interim Chief Executive Officer. Dr. Escobar assumes the interim CEO post immediately and will work closely with the Board on its current agenda and the long term goals of the organization. He has been with USSEC since May 2007 serving as USSEC Executive Director.

"The Board is very confident in our decision that Miguel is the right choice to lead USSEC and his skills and experience in international agribusiness, veterinary pharmaceuticals, and biotechnology will provide a steady hand for USSEC in day-to-day operations," said USSEC Chairman Scott Fritz. "We are very pleased to have a leader of his caliber take this post and look forward to working with him to benefit America's soybean growers and industry."
Escobar holds a Doctor of Veterinary Medicine degree from National University in Colombia. In addition to business management, sales and marketing experience, he also brings a strong technical background in the crop protection, animal health and public health markets. Prior to joining USSEC, he worked for several major multinational agribusiness companies.

The U.S. Soybean Export Council promotes U.S. soy internationally, helping make soy the highest valued U.S. agricultural export at over $12 billion annually. USSEC, formed by the farmer directors of both the American Soybean Association and United Soybean Board, incorporates the expertise of the soybean industry and soybean producer organizations to broaden promotional support for overseas marketing efforts. The Board of Directors leads the activities of USSEC's global network of staff and consultants to help ensure the U.S. continues to export approximately 50 percent of soybean production.

Thursday's Headlines

“Duran Tied to ASA Investigation Request”

Agri-Pulse reports additional details behind the decision of the United States Soybean Export Council Board to place CEO Dan Duran on administrative leave. The announcement Tuesday came less than a week after Agri-Pulse received word that an internal United Soybean Board review of its contractors found USSEC to be one of the lower rated contractors. USSEC carries out checkoff-funded international marketing efforts for USB.

Misconduct by Duran was alleged when the American Soybean Association requested an audit of the soybean checkoff – including USB and USSEC.

The USSEC board says it will not comment further while it considers its current direction and the long term goals of the organization. The day-to-day operation of USSEC continues through the executive staff of the Council.
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“FDA Overhaul Bill Presented”

Senate lawmakers say the U.S. Food and Drug Administration should conduct more food inspections - and during an emergency the government should have better access to industry test results. Therefore, a bipartisan team of lawmakers has introduced a bill that would expand FDA funding and give the agency more power to recall food. The legislation would require importers to verify the safety of their products and directs plants to address hazards and prevent product contamination.

Senate Assistant Majority Leader Richard Durbin says it’s clear the FDA simply can't keep up with the challenge of protecting nearly 80-percent of our food supply. Republican Senator Judd Gregg says there is momentum for the measure and that there is no significant opposition to the bill.

The Senate bill also has the support of several groups including the Center for Science in the Public Interest, Consumers Union and the Grocery Manufacturers Association. Several bills have previously been introduced in Congress in the interest of food safety overhauls, but they have stalled. Lawmakers are confident this time will be different.
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“Spending Package Draws Opposition”

The 410-billion dollar omnibus spending package, designed to fund government until the end of the fiscal year, is finding resistance from two Democratic Senators - Russ Feingold of Wisconsin and Evan Bayh of Indiana.

Feingold objects to the more than seven-billion dollars in earmarks the bill contains for various member-backed projects. Bayh laid out his opposition in a column in the Wall Street Journal, in which he urged the Senate to reject the bill and said if it did not, Obama should veto it. Democratic leaders hope to pass the bill in time for the President to sign it by Friday, when a stopgap funding measure expires.

Meanwhile, earmark critics want to give the President line-item veto authority. Senators Russ Feingold, John McCain and Paul Ryan were expected to introduce on Wednesday a bill that would give the President the ability to rescind specific spending items in appropriations bills he has signed into law. Congress would have to vote up or down on the package.
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“Cap on Tax Deductions Questioned”

During a committee hearing on the President’s budget, Senate Finance Committee Chairman Max Baucus questioned the viability of a cap on tax deductions for the wealthiest Americans proposed by President Obama to help pay for an overhaul of the health care system. While questioning Treasury Secretary Timothy Geitner, Baucus said the administration should find savings within current health care programs to fund a health care overhaul, instead of resorting to a tax hike for that purpose.

The administration proposes limiting the value of itemized deductions claimed by taxpayers in the top two tax brackets - which would be 36-percent and 39.6-percent starting in 2011 - to the value the deductions would have for taxpayers in the 28-percent bracket. The plan would raise 318-billion dollars in additional revenue over a decade, but critics charge that it would discourage philanthropy.
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“Ag Committee Holds Second Child Nutrition Hearing”

The Senate Ag Committee held a Wednesday hearing which focused on improving nutrition for America’s children in difficult economic times. Committee Chairman Tom Harkin said the hearing continues ongoing efforts to address issues of child nutrition and health. In opening remarks, the Chairman said obesity, even among children, has reached epidemic levels in America, raising the specter that our children will not live as long as their parents. He added that a health care system that is ill-equipped to prevent disease compounds these problems.

Senator Harkin called for the reorientation of our health care system so that it focuses on preventing diet-related illnesses and promoting good nutrition and wellness. He added - our child care settings also present a unique and often overlooked opportunity to reach children before they enter kindergarten and expose them to the right kind of foods and eating habits.The first hearing on this subject was held last December.

One of the solutions, Harkin said, is to improve school meals: offering foods that have more of the good stuff such as vitamins and minerals; and less of the bad such as added sugar, sodium, and fat. That means more low- and no-fat milk, leaner meats, whole grain products, and fruits and vegetables, particularly fresh. A barrier to this, said Harkin, is cost.
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“Hearing Held on Smart Grid Technology.

In the first of a four-part series of key hearings to prepare for drafting a comprehensive Senate energy bill, the Senate Energy & Natural Resources Committee held hearings Tuesday on “smart grid” initiatives and technologies. Committee Ranking Member Lisa Murkowski noted that since the stimulus bill has provided 4.5-billion dollars for smart grid technology, wise policy choices must be made quickly to avoid investing in technology that may become obsolete.

An example of Smart Grid Technology is Boulder, Colorado which has claimed the nickname, “SmartGridCity”. This moniker is a result of Xcel Energy’s business strategy to focus on an “intelligent grid.” Xcel’s grid is built on a design for a fully inter-connected system that allows customers to more actively participate in decisions about their own energy use. Colorado Senator Mark Udall says Boulder residents can program their dishwashers to start when energy prices are low using their BlackBerries. And, if they have a hybrid car, they can wash clothes using the car’s battery.

Former astronaut Edward Lu leads smart grid technology development at Google. He likes to talk about a pilot program in place that allows Google employees to monitor their home electricity use from their cell phones. Lu says studies show that informed consumers cut their energy bills by up to 15-percent. He projects that if half the nation’s consumers would cut their electricity use by 10-percent - the savings would equal taking eight-million cars off the highways.
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“Johanns – No Cancer”

Former Secretary of Agriculture and freshman Senator Mike Johanns ' doctors have indicated they did not find any cancer during a surgical procedure to investigate a suspicious spot on the Senator's left lung. Johanns is recovering after a three-hour surgery performed Tuesday at a Washington-area hospital. During that procedure, doctors removed the lower portion of his left lung. Spokeswoman Sarah Pompei called the removal a - precautionary step.

The Senator is reportedly resting comfortably and could leave the hospital sometime today (Thursday). He intends to be back at work by the 16th.

Pompei said Johanns and his wife Stephanie are grateful for the outpouring of support - and are especially appreciative of the many prayers being offered for them.
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“EPA Seeking Comment on Report”

EPA is seeking public comment on the annual Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2007 draft report. The gases covered by this inventory include carbon dioxide, methane, nitrous oxide, hydro fluorocarbons, perfluorocarbons, and sulfur hexafluoride. The inventory also calculates carbon dioxide emissions that are removed from the atmosphere by “sinks,” such as through the uptake of carbon by forests, vegetation, and soils.

The draft report shows that overall emissions during 2007 increased by 1.4 percent from the previous year. This trend was due primarily to an increase in carbon dioxide emissions associated with fuel and electricity consumption. Overall, total U.S. greenhouse gas emissions have grown by 17.1 percent since 1990 to 7,125 million metric tons of CO2 equivalent.

This report will be open for public comment for 30 days after the Federal Register notice is published.
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“Purdue Expert: Be Conservative and Defensive”

The extreme uncertainty of the moment implies that pork producers, like all of agriculture, should be conservative and defensive. Those are the thoughts of Purdue University’s Chris Hurt. The Extension marketing specialist says - perhaps management decisions in 2009 should be focused on increasing odds of survival, rather than looking for big opportunities.

Patience could be about to pay off. Hurt believes, pork producers - may be on the verge of returning to profitability. Losses date back to October 2007. Hurt says, in response to concerns of slowing world economic activity - hog prices are expected to rise seasonally in coming months – as feed costs continue to drop. Hurt points to average live-hog prices around 47.50 per hundredweight, but expected production costs near 45.50, which would provide a modest profit.

Hurt predicts that hog prices will not see much enhancement this year due to reductions in demand, particularly export demand. USDA expects a 14 percent drop. Domestic pork production is also expected to drop – maybe one or two percent this year. This indicates pork supplies available to U.S. consumers will rise modestly for the year. Pork available per person is expected to rise by as much as 6 percent in the second quarter.
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“Chile DDG Test Results Favorable”

There is certainly potential in Chile for U.S. DDGS. That’s the conclusion of Dr. Randy Shaver, a dairy science professor at the University of Wisconsin-Madison. In collaboration with a Chilean farm supply cooperative, Shaver conducted feeding trials at six selected Chilean dairy farms. He called the results of his two-season long trial – conclusive.

The trial was divided into two phases to utilize weather related conditions of the winter and summer seasons. In phase one, winter, all six trial farms showed a reduction in feed costs by an average of 17 cents per cow per day and an increase in milk income of 33 cents per cow per day. This brings the combined value of 50 cents per cow per day. The six herds averaged 167 milking cows each. Shaver says, - that means an additional revenue of $83.50 per farm per day.

During summer phase of the project, the cows receive most of their forage from high-quality pasture instead of silage. Shaver reports, - we still saw a significant increase in milk production for the farm that completed a split-herd test and a decrease in feed costs for most of the herds. Shaver feels - trials like this should certainly augment the use of DDGs in Chile and its surrounding area.
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“Soybean Luncheon Scheduled”

The nation’s soybean producers, through the American Soybean Association, will serve an array of soy-based foods to members of Congress, government officials and industry representatives at a special Capitol Hill luncheon. The Seventh Annual Congressional Soyfoods Lunch is slated for next Wednesday. The luncheon has become an annual forum for ASA and its sponsoring partners to showcase soy-based food products, and to demonstrate the importance and benefits of soyfoods to sound human nutrition.

Nutritionists point out that soy can complement or fortify balanced diets, rather than compete with products that are already consumed. Soy foods have become an important staple in U.S. federal nutrition programs, such as the school lunch program, where the addition of soy can benefit existing menus.

The 2009 Congressional Soyfoods Lunch menu includes: Cuban Black Soybean Soup, Crisp Edamame and Vegetable Salad, Vegetarian Beef Bul Gogi (Korean barbecue), Coconut Curry Chicken, Alfredo Primavera and SOYJOY, made with whole soy and real fruit. There will also be a refreshment bar featuring Apple Soy Chai Latte and Soy-tisfying Almond-Chocolate Cappuccino.
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“Commodity Classic Set Attendance Record”

It’s a new attendance record. Last week’s Commodity Classic Trade Show, held in Grapevine, Texas, had a total attendance of 4, 527 registrants. The trade show featured 236 companies exhibiting in 943 booths. That’s more than double the attendance of the first Commodity Classic held in1996.

Commodity Classic Co-chair Ron Kindred said - we were extremely pleased. He said - the WIN and Learning Center sessions were very well attended with some of the sessions having standing room only!

Commodity Classic 2010 is scheduled for March 4-6 in Anaheim, California.

Monday's Ag Headlines

“Farmer Leaders of Major Commodity Groups Defend Farm Bill Safety Net”

The leaders of the organizations participating in Commodity Classic took an opportunity to reiterate the importance of the farm safety net as written in the 2008 Farm Bill Friday. Together the groups - including the National Association of Wheat Growers, National Corn Growers Association, National Sorghum Producers and American Soybean Association - represent nearly 90-percent of the nation’s crop area planted. The producers who lead these groups said in a statement that the government’s small investment in ag programs provides an excellent return for the American people.

The statement points out that production ag is a volatile business and that a workable safety net is vital to the security of the industry. A change to the safety net - they continue - will impact the continued production of an abundant, affordable and safe food and feed supply for Americans and those the U.S. exports to around the globe. Because a five-year farm bill is designed to provide stability to producers, agricultural operations and the food system - the major commodity organizations says the 2008 Farm Bill shouldn’t be reopened before it expires in 2012.

The statement concludes with a pledge to work with the Obama Administration and Congress to ensure farm program monies are spent wisely.

David Cleavinger - a wheat producer from Wildorado, Texas - is president of the National Association of Wheat Growers. Laurel, Nebraska corn grower Bob Dickey is president of the National Corn Growers Association. Toby Bostwick is chairman of the Board of the National Sorghum Producers and a sorghum producer from Melrose, New Mexico. The American Soybean Association president is Johnny Dodson - a soybean producer from Halls, Tennessee.
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“Another Lawmaker Voices Opposition to President’s Farm Policy Proposal”

Just as commodity group leaders spoke out regarding the farm safety net Friday - more reaction to President Obama’s budget proposal came from the halls of Congress. House Ag Committee member Jerry Moran - who represents the First District of Kansas - stated his opposition to proposed farm policy changes. Moran said his farmers have made it clear that the direct payment program is the best safety net available to help them meet the challenges of high diesel and fertilizer costs - as well as the costs associated with potential increases in environmental regulation. Moran also believes direct payments are the most market oriented and least disruptive of trade.

Given the economic challenges facing the country - Moran says now is not the time to re-visit the farm bill debate. He notes commodity programs were already significantly cut less than one year ago. Among Moran’s concerns is the provision to change the test that determines who can receive direct payments - and the call for changes in the crop insurance program. According to Moran - the President and Ag Secretary Tom Vilsack have taken a position that is out of touch with production agriculture.
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“GOP Leaders Take Hard Line on Obama Budget”

Agriculture wasn’t at the center of comments made by the House and Senate Minority Leaders - but they are vowing to oppose the President’s budget priorities. They criticized the proposal for a new cap-and-trade system for carbon emissions allowances and tax increases on small businesses, family farms, middle-class families, charities and Americans with a 401k.

House Minority Leader John Boehner (bay-ner) called the proposed cap-and-trade system a code word for a carbon tax on Americans that would help other countries that do not have similar carbon emissions restrictions. And as for the taxes - he promised his Republican colleagues - and a lot of Democrat members of the Congress - would never stand for having taxes raised on Americans.
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“Bullard Visits with Vilsack”

R-CALF USA CEO Bill Bullard recently spoke with Ag Secretary Tom Vilsack about the challenges facing independent cattle producers - as well as remedies available to improve the live cattle industry in the U.S. Bullard discussed how concentration in the feedlot and packing sectors has harmed producers and resulted in an exodus from the industry - and how current trade policies, relaxation of border restrictions and ongoing efforts to implement a mandatory National Animal ID System are disadvantaging the competitiveness of domestic cattle producers.

According to Bullard - the cattle industry desperately needs reform - but is also uniquely positioned to help revitalize the U.S. economy. He says that’s possible without government expenditures if fundamental changes are made to fully restore competition in the marketplace.

Bullard says Secretary Vilsack was attentive, asked questions and took notes. He credited the Secretary with giving more consideration to the issues of importance to independent cattle producers than any of the three secretaries who preceded him.
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“Federal Drought Action Team Activated”

Secretaries of the Interior and Agriculture have created a Federal Drought Action Team that will work cooperatively to respond to communities facing significant drought. The Team includes representatives appointed by Secretary of the Interior Ken Salazar and Secretary of Agriculture Tom Vilsack, along with representatives from other federal agencies.

Immediately the Team is beginning to work with California officials. That state is currently facing one of its worst droughts in decades. The announcement follows an earlier announcement by the Department of the Interior's Bureau of Reclamation that based on water forecasts; water allocations for the Federal Central Valley Project will be significantly limited for agricultural, municipal, industrial, and environmental uses.

Interior Secretary Salazar said, - the drought situation in California is dire. Farms, ranches, and communities across the Central Valley are withering on the vine and in need of any help the federal government can provide. Ag Secretary Vilsack says - it is essential that farmers, ranchers, and rural communities have confidence that the government will be working together to ensure they have access to every tool available.
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“Wind Power to the People”

Federal regulators will allow wind developers to build transmission lines. Initially, Chinook Power Transmission and Zephyr Power Transmission have received Federal Energy Regulatory Commission approval to proceed with projects covering more than two-thousand miles. By the time the lines are finished in 2014, the construction of three-thousand megawatts of wind power generation will have been completed.

The two companies propose to take a new approach, entering into an agreement to provide half of the capacity on their new transmission lines to wind developers. The agreement will help finance the transmission lines and convince utilities that the project is viable. The remaining half of the transmission line will be available for other power generators.

One transmission line will run from Medicine Bow, Wyoming to just south of Las Vegas. The second line will run from Harlowtown, Montana to Las Vegas. Each transmission line is expected to cost three-billion dollars and have a capacity of 3-thousand Megawatts.
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“UL OKs 15 Percent Ethanol Blend”

It was well documented when, a few years ago, Underwriters Laboratories gave the OK to pump a ten- percent ethanol – 90 percent gasoline blend through existing gasoline dispenses. Just a few days ago a group of Governors asked the Environmental Protection Agency to OK a 13 percent ethanol mix. Now, Underwriters Laboratories says its data shows existing gasoline dispensers can safely dispense ethanol blends up to 15 percent.

Recent statements credited to Underwriters laboratories sent mixed signals as to whether a higher blend is permitted. In a statement clarifying the matter, the UL notes that its researchers found that – using equipment certified to UL 87 to dispense ethanol blends with a maximum ethanol content of 15 percent should not result in critical safety concerns.
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“Looking for Rust Susceptible Proteins”

Domestic soybean cultivars have little resistance to soybean rust, and now America's second largest crop is severely threatened by this relatively new disease. The detection of three-thousand proteins produced in plants of common beans could help breeders develop resistance against the bean rust fungus - a major concern for domestic dry bean and snap bean growers. It is hoped the discovery of the dry bean rust disease resistance proteins will help identify similar proteins in soybeans and advance soybean breeding efforts as well.

The symptoms of this rust initially appear as small white flecks on the upper leaf surface, then develop into reddish-brown pustules. When severe infections occur, the leaves curl upward, dry, turn brown, and drop prematurely, and pod set, pod fill and seed size are reduced.

Plant pathologist Bret Cooper, at the ARS Soybean Genomics and Improvement Laboratory in Beltsville, Maryland, leads the research, which could help scientists determine which proteins produced in bean plants are involved in providing resistance to rust fungus.
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Friday's Ag Headlines

“President Releases Budget”

Calling it - A New Era of Responsibility, President Obama as unveiled a 3.55 trillion dollar budget for fiscal year 2010. In the President’s message Mr. Obama pledged – we will make the investments in the next three years to double our Nation’s renewable energy capacity. In the process, he added, - we will put Americans to work in new jobs that pay well – jobs installing solar panels and wind turbines and develop the new energy technologies that will lead to even more jobs and more savings, putting us on the path toward energy independence.

The bill: provides over 20-billion dollars in loans and grants to support and expand rural development activities. Supports the implementation of a 250-thousand dollar commodity program payment limit. Reduces direct payments to the largest farmers. Reduces crop insurance subsidies and eliminates cotton storage credits. The budget also Improves enforcement of the Packers and Stockyards Act and supports nutrition programs.

The President said – those of us who manage the public’s dollars will be held to account – to spend wisely, reform bad habits, and do our business in the light of day – because only then can we restore the vital trust between a people and their government.
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“Harkin Comments Favorably on Budget Proposal”

Iowa Senator Tom Harkin, Chairman of the Senate Ag Committee, says - there will be no quick fixes to the economic situation facing our country. That’s why the blueprint sent to Congress by President Obama provides honesty in budgeting; making tough choices, but wise investments that will restore our fiscal health and cut the deficit in half over the first five years.

Harkin said, - we need every federal dollar to go where it can do the most good. In scrubbing the budget, the President has focused on reforming large commodity program payments and the direct Freedom to Farm payments.

The Iowa Senator said - the proposal for increased nutrition funding is a critically needed and justified investment in better diets and nutrition for America’s children, which can lead to lifelong better health and wellness. This investment goes hand-in-hand with and is integral to the president’s call for health care reform because it is a key prevention strategy.
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“Chambliss Concerned with Safety Net”

Senator Saxby Chambliss says he is - greatly concerned - with several proposals outlined in the President’s budget. The Ranking Member of the Senate Ag Committee says - efforts to cut direct payments and make other sweeping changes to current farm policy will only inject additional uncertainty into the farm economy. Chambliss said the bill - will be met with my strong opposition.

Chambliss said – I believe it is unwise to completely alter the makeup of the farm safety net before we have the opportunity to assess the effects of the reforms included in the 2008 farm bill. The Georgia Senator emphasized our focus should be - the certainty they expect - and work with the agriculture community at the appropriate time to make any changes in the current farm safety net.
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“More Reaction”

House Ranking Member Frank Lucas opposes President Obama's budget proposal that calls for eliminating direct payments to farmers with more than 500-thousand dollars in annual sales. Lucas says - this proposal attacks family-run farms all across rural America. The people who provide us with the safest, most abundant food supply in the world are being asked to shoulder the burden of our economic crisis.

Lucas said - this proposal is ill-timed, ill-conceived, and completely out of touch with the realities of production agriculture. He added - we made a commitment to our producers when we passed the 2008 farm bill. Now, during an economic crisis, now when our producers are trying to make planning decisions, now when they're trying to address higher input costs, we're going to renege on our promise to them.
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“Organizations Note Weaknesses in Budget Bill”

The President’s budget calls for direct farm program payments to farms with sales over a half-million dollars to be phased out over three years. Earlier, Secretary of Agriculture Tom Vilsack told members of the National Association of Wheat Growers – the future of direct payments is not going to be an easy future. He predicted they have a – limited future.

The National Cotton Council said the proposed program changes fail to recognize the work recently completed by Congress on the farm bill. The NCC emphasized that after a lengthy and arduous debate, the current farm law, which is still being implemented, introduced significant commodity program changes while maintaining an important safety net for production agriculture, and enhanced conservation and nutrition programs.

The Act includes a new provision directing the Secretary of Agriculture to cover a portion of upland cotton Commodity Credit Corporation loan storage costs during periods of low prices. NCC says - the new provision simply legislates at a reduced rate an administrative practice that USDA has undertaken for several years. The cost of the new provision was fully offset by modifications to the upland cotton counter-cyclical target price.
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“Proposal Will Impact WTO Talks.

What impact will the President’s proposal have on WTO talks? An economist at Truth about Trade and Technology says anything that would reduce payments to farmers in the United States would be looked on favorably by the rest of the world. Ross Korves says - it's what happens next when times get tough - that would spell out the longer-term impact of U.S. domestic farm policy on WTO talks.

U.S. spending on farmers has been one of many points of contention in World Trade Organization talks and trading partners want to see more concessions. Total U.S. crop and dairy subsidies are estimated to total about 7.5-billion dollars this year due to relatively strong crop prices. In 2005, when prices were lower, subsidies were more than 16.4- billion.
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“Cap on Greenhouse Gas Emissions Difficult Sell”

A mandatory cap on the nation’s greenhouse gas emissions, a key part of President Obama’s domestic agenda, may be hard to sell on Capitol Hill. The cap would be designed to generate revenue for the Federal Government – and at the same time address the world's most pressing environmental issue. But key Senators already disagree on how to design a system that limits emissions, puts a price on carbon and allows industries to trade pollution allowances.

The developing battle is pitting one region against another. Lawmakers from coastal states understand a carbon cap is a critical goal. But many feel its long-term economic benefits would outweigh its costs. But others from the middle U.S. fear it could hurt their states' economies. Many of these states depend on fossil fuels and manufacturing.

A federal cap-and-trade program would create a new commodity - allowances that would permit industries to discharge specified amounts of carbon dioxide into the atmosphere -- and a market for that commodity that would be worth tens or perhaps hundreds of billions of dollars, along with a complex new regulatory system.
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“Farm Bureau Encourages Rural Development”

American Farm Bureau Federation President Bob Stallman told attendees at USDA’s annual Outlook Forum that the relationship between farmers and rural communities is still a two-way street. The Farm Bureau leader said it is clear that today’s farm families need employment opportunities in their hometowns in addition to their farm income. And, he said, they need vibrant local businesses that provide goods and services to their farms.

Stallman said - the need to emphasize rural development issues such as high-speed Internet access, improved healthcare services, enhanced education and improved infrastructure is growing in importance to America’s farm and ranch families. Stallman said, in order to improve the quality of life in rural America, Farm Bureau will be a public policy advocate and serve as a ready resource on rural development issues for states and counties.
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“Canadian Cattlemen: Time to Move Against COOL”

The Canadian Cattlemen’s Association says it has seen enough. It’s time for its government to take its trade challenge against the United States’ Country-of-Origin Labeling legislation to the World Trade Organization. The Canadians had earlier opted to wait and see if the new administration would make changes to the COOL rule. But, U.S. Ag Secretary Tom Vilsack has communicated to the U.S. industry that he expects adoption of his suggested voluntary guidelines. And that prompted the desire by the Canadians to move against the U.S.

Before the final rule was announced, a number of U.S. meat packers and processors curtailed their imports of Canadian livestock and meat, citing the expense of dedicating separate production lines to handle imported animals or products.

COOL requires labeling at U.S. retail for muscle cuts, ground beef, veal, pork, lamb, goat and chicken; wild and farm-raised fish and shellfish; fresh and frozen fruits and vegetables; peanuts, pecans, macadamia nuts, and ginseng sold by designated retailers.
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“U.S. Sorghum Going to Canada”

The U.S. Grains Council has organized the sale of four railcars of South Dakota sorghum to Canada. The sale of approximately 360 metric tons was finalized this week. Dan Keefe, USGC manager of international operations for DDGS, said this sale was not about quantity but more so about opportunity. Keefe said, - this is the initial step in getting greater quantities of U.S. grain sorghum to our northern neighbors.

Keefe said U.S. sorghum has strong potential for growth in the Canada’s marketplace due to its competitive price to local wheat and barley. Exporting sorghum, according to Keefe, is profitable for U.S. farmers; in the case of this transaction, the sorghum was priced higher than it was in South Dakota.
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“Senators Want Delay in Chinese Cotton Registry”

A handful of key U.S. Senators want China to delay implementation of its new registration system exclusively for imported cotton. The program is set to begin March 15th. The Senators argue the new system, launched as part of China’s General Administration of Quality Supervision Inspection and Quarantine, lacks transparency and is in clear violation of China’s World Trade Organization accession agreement.

In a letter to Ag Secretary Tom Vilsack, U.S. Trade Representative Peter Allgeier and Chinese Ambassador Zhou Wenzhong, - Senators Saxby Chambliss, Tom Harkin, Blanche Lincoln, Thad Cochran, and Pat Roberts specifically outline their requests to encourage appropriate U.S. officials to continue to engage appropriate Chinese authorities to gain the delay.

Additionally, they ask them to schedule technical consultations if the delay is accepted and request this matter be included on the agenda for next month’s regular meeting in the WTO on technical barriers to trade.
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“Producers Favor Biotech Traits in Wheat”

Anecdotal evidence has long suggested many wheat producers would like biotech traits in their arsenal, and national wheat organizations support biotech commercialization. But what do local growers really want? More than three-quarters of wheat growers responding to a recent National Association of Wheat Growers survey approved a petition supporting the commercialization of biotechnology in wheat.

This large number of approvals may be just what private technology providers need to be assured of ground-level support for their efforts before undertaking the decade-long, multimillion-dollar path toward commercialization of a trait.

To date, the survey has enjoyed a 32 percent response rate, with approval rates similar across states and farm sizes.
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“Report: Rural Employment Down”

The Daily Yonder/Center for Rural Strategies reports that 297-thousand jobs have been lost in Rural America – and all but 15-thousand were shed in December of 2008. Rural counties lost 282-thousand jobs in December, raising the rural unemployment rate to 7.6 percent, up from 6.8 percent in November. The national unemployment rate was 7.1 percent in December.

The Center says every state except Texas lost employment in rural areas in December. The highest rates of unemployment increase for rural counties occurred in the Northern Great Plains. The worst percentage increase occurred in Shelby County, Missouri, where the unemployment rate rose 86 percent.
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“Lamb-Mutton Exports Strong”

The export of U.S. lamb and mutton muscle cuts set a new single-year record in 2008. The U.S. Meat Export Federation reports that, after a decline in 2007, volume increased 28 percent during 2008 - exceeding five-thousand metric tons. But the strongest growth was in value, which nearly doubled over 2007 by reaching 21.5 million dollars – an all-time record for a single year. When lamb variety meats are included, total exports increased by 44 percent in worldwide value to more than 25.3 million – the second-highest total on record.

The USMEF reports that lamb exports to the Caribbean were the largest factor, increasing 121 percent in volume and 240 percent in value over 2007. Bermuda alone accounted for about half the value of global U.S. lamb exports, totaling 10.65 million dollars for the year. Other significant Caribbean destinations for U.S. lamb include the Bahamas, Jamaica, the Cayman Islands and the Dominican Republic.

Elizabeth Wunderlich, U.S. Meat Export Federation representative in the Caribbean, says - exporters are becoming more aggressive when it comes to the export market for lamb, and the Caribbean has certainly been one of the shining stars. She points out - you have a native population there that really enjoys cooking and eating lamb, as well as a hotel and restaurant industry that loves to feature high-quality cuts of U.S. lamb.
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